Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Investor Presentation (May 2023)
42 slides from Hastings Technology Metals's investor presentation, May 31, 2023
Slide 1: Yangibana Project Update
ASX Announcement 31 May 2023 YANGIBANA PROJECT UPDATE Staged development strategy to reduce project delivery risk and enable faster pathway to cash flow HIGHLIGHTS • Results of the project capital and delivery model review support a staged development strategy for the Yangibana Rare Earths Project •
Slide 2: Staged development strategy and updated capital estimates
Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX: HAS) (Hastings or the Company), is pleased to provide an update on the outcomes of a review of the implementation plan for the Yangibana Rare Earths Project (Yangibana) in Western Australia. The review commenced during Q1 CY
Slide 3: Operations summary and project economics
An approximate 30% increase in the estimated operational expenditure for Stage 1 is broadly in line with market conditions, including labour and supply chain costs and price increases for the reagents required for processing. Table 2: Operations Summary Stage 1 Stage 2 Life Of Mine (LoM) 17 years (I
Slide 4: Basis of estimate and contractor delivery model
BASIS OF ESTIMATE The updated capital cost estimate pricing was obtained in first quarter of 2023 and is in Australian dollars (A$). The overall capital estimate has an estimated accuracy of -10/+15%. The operating cost estimate is based on current industry rates for mining, labour costs for an owne
Slide 5: Next steps
NEXT STEPS In addition to the early site works detailed above, a three-month early works agreement is now in place for the beneficiation plant and infrastructure work, allowing GRES to immediately commence work on site, ahead of the final agreement being finalised and the start of main construction
Slide 6: About Hastings Technology Metals Limited
ABOUT HASTINGS TECHNOLOGY METALS LIMITED Hastings Technology Metals Limited (ASX: HAS) is a Perth based rare earths company primed to become the world’s next producer of neodymium and praseodymium concentrate (NdPr). NdPr are vital components in the manufacture of permanent magnets used every day in
Slide 7: Yangibana Rare Earths Project – Staged development strategy
Australia’s Next Rare Earths Producer Yangibana Rare Earths Project Staged development strategy Hastings Technology Metals Limited | ASX : HAS 31 May 2023
Slide 8: Importance notices and disclaimer
Importance notices and disclaimer All currency amounts are in A$ unless stated otherwise Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company” or “Hastings”). This The Company is under no obligation to, nor makes any undertaking to, update or revise such for
Slide 9: Corporate overview
Corporate overview Developing the world-class Yangibana Rare Earths Project in Western Australia Exchangeable bonds Share price1 Shares on issue Market capitalisation Cash at 30 April 2023 to Wyloo Enterprise value $2.10 129.2m $271m $129m $150m $292m HAS 12-month share price vs NdPr oxide price2 Ke
Slide 10: Yangibana overview
Yangibana overview Proven and de-risked flowsheet initially producing a concentrate, followed by a high- Stage 2 value mixed rare earth carbonate to global market Hydrometallurgical plant Halls Creek Broome Port Hedland Mining Beneficiation Hydrometallurgy Dampier Crushing, grinding, Cracking, leach
Slide 11: Staged development strategy
Staged development strategy
Slide 12: Staged development strategy
Staged development strategy Enhanced two-stage delivery model supporting a de-risked pathway to becoming Australia’s next rare earths producer by Q1 CY2025 Mixed Rare Earth Rare Earth Concentrate Downstream processing Double production Carbonate Stage 1 Stage 2 Stage 3 Stage 1b Yangibana mine and Hy
Slide 13: EPC delivery model reducing risk
EPC delivery model reducing risk Fixed price EPC contract for the beneficiation plant GR Engineering ~$210m binding terms sheet entered with final form contract to be completed shortly De-risks delivery Offers additional benefits and lowers risks in multiple areas compared to previous EPCM model: •
Slide 14: Project execution schedule
Project execution schedule Staged Development Strategy enabling a quicker and lower risk pathway to cashflow to support funding of Stage 2 2023 2024 2025 2026 2027 2028 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EPC terms agreed Yangibana Enabling Works (Airstrip, Roads,
Slide 15: Staged construction and production metrics
Staged construction and production metrics Results of comprehensive project review to reduce overall project delivery risk Stage 1 Stage 2 Project capital cost Yangibana mine and beneficiation plant Hydrometallurgical plant • Capital cost for Stage 1 and 2 of $948m, representing a 44% increase CONST
Slide 16: Stage 1 capex estimates
Stage 1 capex estimates Capital intensity per % NdPr produced remains competitive with other developers Stage 1 capital cost (~A$470m) CAPEX Total Cost Total Cost % 11% Processing Plant (and NPI) (A$M) 210 (US$M) 143 45 Project cost review Capex increases attributed to following Enabling Works1 88 6
Slide 17: Operating expenditure competitive positioning
Operating expenditure competitive positioning Opex intensity per % NdPr produced remains competitive with other developers Stage 1 operating cost 8% Cost Cost 14% Total Cost Operating Costs % A$/kg US$/kg 10% (A$M pa) REO REO Stage 1 opex Labour 25.8 14 3.09 2.10 8% ~30% increase from 2020/21 Power
Slide 18: Revenue competitive positioning
Revenue competitive positioning High NdPr content in Concentrate and MREC support strong revenue assumptions Stage 1 Yangibana revenue1 LOM NdPr Content1 Strong offtake demand for Stage 1 Concentrate – discussions ongoing NdPr Dy Tb Other Pricing scenarios for Concentrate 37% include sale to Mixed R
Slide 19: Project economics
Project economics Attractive investment proposition under both Stage 1 as a standalone case and Stage 2 Stage 1 Yangibana mine and Stage 2 Stage 1 Key financial metrics Hydrometallurgical plant • Strong NPV11 and IRR for the initial beneficiation plant (from Stage 2 FID) development case (Standalone
Slide 20: Stage 1 funding
Stage 1 funding1 Lender discussions To be finalised by Q4 CY2023 • NAIF approval in February 2023 for $220m debt facilities3, comprising $170m construction loan and $50m cost overrun Hastings facility Debt Equity Technology • Advanced discussions with additional ~$380m ~$390m lenders including EFA4
Slide 21: Project overview
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Slide 22: Yangibana early works
Yangibana early works ~$88m early works to support commencement of main construction in Q3 CY2023 Figure 1 – Kurrbili Village Figure 2 – SipHon borefield Figure 3 – Yangibana Airstrip Figure 4 – First flight at Yangibana Airstrip 5km Corporate Presentation | Staged Development Strategy 16
Slide 23: Resource and Reserve development
Resource and Reserve development Mineral resources1 and ore reserves over time, including a significant future exploration target2 60 Yangibana Project – Total JORC Mineral Resources (at 30 October 2022)1 40 to 60 million tonnes2 Category mt %TREO %Nd2O3+ TREO tonnes 50 Pr6O11 Measured 4.97 0.96 0.3
Slide 24: Sustainability
Sustainability 18
Slide 25: Approach to sustainability
Approach to sustainability Helping to advance the Sustainability Development Goals as a signatory of the UN Global Compact Health and Safety Maintained a loss time injury frequency rate of 0.0 during in the period up to 31 March 2023 Climate Change Commitment of minimum 40 per cent renewables allowe
Slide 26: Outstanding ESG credentials
Outstanding ESG credentials Significant emphasis on ESG through development of policies and supporting systems overseen by the Board • Ranked fourth out of 159 companies • The Project has been positively • Leading Environmental and Social rated by Morningstar Sustainalytics assessed against World Ba
Slide 27: Core markets
Core markets
Slide 28: Concentrate and MREC offtake
Concentrate and MREC offtake Stage 1 Concentrate offtake discussions focused on parties with hydrometallurgical facilities in Australia and Asia Stage 2 MREC offtake relationships with strong Western counterparties Counterparty thyssenkrupp Materials Trading Schaeffler Technologies AG Solvay Neo Per
Slide 29: Primary uses of high tech permanent magnets
Primary uses of high tech permanent magnets Light weight powerful magnets required in high rotation applications WIND ELECTRIC RADAR ROBOTIC MOBILE HIGH-TECH TURBINES VEHICLES GUIDANCE MOTORS DEVICES TRAINS SYSTEMS Corporate Presentation | Staged Development Strategy 23
Slide 30: Rare earths in the spotlight
Rare earths in the spotlight NdPr oxide is a critical input for NdFeB magnets used in wind turbines and electric vehicles Significant support from NdPr are critical elements of the global energy transition governments LCD / PDP Screens Speakers Defence “Australian Government’s Critical Mineral Facil
Slide 31: NdPr demand catalysts
NdPr demand catalysts Fuelled by the broader electrification trend – magnets for electric vehicles and wind turbines Electric and hybrid vehicle demand (2020-2030)1 Wind energy forecast (2020-2030)1 Electric vehicles • EV demand to grow significantly by EVs to grow by 7.9x by 2030 Wind turbine capac
Slide 32: Capitalising on high growth market
Capitalising on high growth market Global supply deficit for NdPr (used in magnets) forecast due to strong demand growth and lead time to new production NdFeB demand 800 Global NdFeB alloy demand (2023-2040) +167% Global demand forecast to increase 3x over the period from 2022-2040 700 (compound ann
Slide 33: Hastings Long Term Vision
Hastings Long Term Vision
Slide 34: Hastings mine-to-magnet strategy
Hastings mine-to-magnet strategy Focused on staged delivery of the Yangibana Rare Earths Project, with optionality to pursue mine-to-magnet business strategy through the 20 per cent investment in Neo Performance Materials Stage 1 – Yangibana mine Stage 2 – Onslow Stage 3 – Mine-to-magnet strategy Mi
Slide 35: Conclusion
Conclusion
Slide 36: Australia's next rare earths producer
Australia’s next rare earths producer Yangibana is a tier one project with an unrivalled high percentage of NdPr Strong future demand Unique deposit in tier Attractive project Offtake secured, Funding well for NdPr one jurisdiction economics for strategic investment advanced including stages 1 and 2
Slide 37: Appendices
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Slide 38: Board of Directors
Board of Directors Charles Lew Jean Claude Steinmetz Bruce McFadzean Guy Robertson Mal Randall Neil Hackett Executive Chairman Non Executive Director Non Executive Director Finance Director Non Executive Director Non Executive Director • Took over HAS in December • Joined the Board in July • Joined
Slide 39: Executive Team
Executive Team Alwyn Vorster Rudolph van Niekerk Teck Lim Robert Klug Rachael Ward-Pryce Gareth Fleming Chief Executive Officer Chief Operating Officer Chief Financial Officer General Counsel Head of People Acting Project Director • Joined Hastings in • Joined Hastings in early • Chartered accountan
Slide 40: Project Milestones
First resource to construction start Aug 2022 Feb 2019 Jun 2020 Oct 21 22.1% investment Successful second Schaeffler master supply Maiden in Neo; Wyloo pilot plant test – agreement signed Sustainability Report $150m investment Q3 2023 higher yield PROJECT MILESTONES Apr 2021 Feb 2022 Jan 2023 Debt f
Slide 41: Beneficiation plant
Beneficiation plant Life of mine average of 37ktpa of concentrate produced at Yangibana Beneficiation Convention process of crushing, ore sorting, grinding, regrinding and floatation 1.1 million tonnes per annum of Process validated mined ore Process flowsheet extensively tested, validated and de-ri
Slide 42: Hydrometallurgical plant
Hydrometallurgical plant Process development used bench scale test work with successful pilot plant testing 35,000 tonnes per annum of RE Flowsheet mineral concentrate trucked from Yangibana Consists of acid bake, water leach, impurity removal and MREC product precipitation Process validated Process
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